General Partnership Involves a complete sharing in both the management and the liability of the business Limited Partnership Has at least one general partner, who assumes unlimited liability, and at least one limited partner whose liability is limited to his or her investment in the business Articles of Partnership Legal documents that set forth the basic agreement between partners Partnership A form of business organization defined by the Uniform Partnership Act as “an association of two or more persons who carry on as co-owners of a business for profit”
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Partnerships 4-6 Easy to organize Availability of capital & credit Combined knowledge and skills Swift decision making Government regulations are few Advantages Unlimited liability Responsible for each others’ decisions A new agreement is needed if the partnership changes Difficult to sell a partnership interest Distribution of profits may be uneven Cannot find external funding as easily as large corporations Disadvantages